Need to Know
- US equity funds pulled in a net $11.72 billion in the week to August 19 — the largest weekly haul since July 29 — even as a bond-market selloff and rising oil prices weighed on sentiment, LSEG Lipper data showed.
- About 85% of the 468 S&P 500 companies that have reported results so far have beaten average analyst estimates this earnings season, per LSEG.
- Nifty and Sensex both ended the week lower — down 0.5% and 0.6%, respectively — as Brent crude climbed near $94 a barrel amid renewed US-Iran tensions.
- FIIs sold ₹583.36 crore of Indian equities on August 20 but remain net buyers of ₹23,815 crore for the month, NSDL data showed.
- Nvidia reports Q2 FY27 results on August 26 — a print that could set the tone for AI-linked stocks on both Wall Street and Dalal Street next week.
Global fund managers kept buying US stocks through a rough week for bonds. Investors poured a net $11.72 billion into US equity funds in the week ended August 19, marking the second straight week of net buying and the largest single-week haul since July 29, according to LSEG Lipper data. The inflows came even as a selloff in Treasuries and a jump in crude oil prices pressured risk sentiment through the week.
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Why Wall Street Kept Buying
The buying was underpinned by a resilient earnings season. About 85% of the 468 S&P 500 companies that have reported so far have beaten average analyst expectations, LSEG data showed.
Sentiment also got a lift after Anthropic projected strong revenue growth earlier in the week, reinforcing investor confidence in the broader AI trade.
The mood swung sharply within the week itself. US indices tumbled on Thursday, with the Dow, S&P 500 and Nasdaq falling 1.32%, 0.87% and 1.00%, respectively, as Treasury yields spiked.
Markets clawed back some ground on Friday, the Dow added roughly 1%, while the S&P 500 and Nasdaq each rose about 0.4%. Even with that bounce, all three benchmarks closed the week lower, a sign that fund-flow optimism and index-level price action are, for now, telling two different stories.
| US Fund Flows | Net Flow (Week to Aug 19) | Context |
|---|---|---|
| Equity Funds (Total) | +$11.72 billion | Largest weekly inflow since July 29 |
| Large-Cap Funds | +$9.58 billion | — |
| Multi-Cap Funds | +$1.36 billion | — |
| Mid-Cap Funds | −$809 million | — |
| Small-Cap Funds | −$70 million | — |
| Sector Funds (Total) | −$3.1 billion | Led by financials |
| Financial Funds | −$1.87 billion | — |
| Consumer Staples Funds | −$623 million | — |
| Industrial Funds | −$444 million | — |
| Technology Funds | +$287 million | — |
| Bond Funds (Total) | +$9.92 billion | Largest since July 15 |
| Money Market Funds | −$3.57 billion | Ends 2-week inflow streak |
Source: LSEG Lipper data, via Reuters
Sector Rotation: Money Exits Financials, Bonds Draw the Biggest Bid Since July
Within equities, the buying was concentrated at the top of the market, large-caps absorbed $9.58 billion while mid- and small-caps saw outflows. Sector funds bled $3.1 billion overall, led by financials, even as technology funds attracted a modest $287 million.
Bond funds were the week’s bigger draw in absolute terms, pulling in $9.92 billion, the largest weekly bond inflow since July 15, split across general domestic taxable, short-to-intermediate investment-grade, and short-to-intermediate government and Treasury funds.
Money market funds saw $3.57 billion in outflows, snapping a two-week streak, a sign some cash is rotating back into duration even with yields elevated.
Dalal Street Faces the Same Bond-Oil Squeeze
Indian markets spent the week navigating an almost identical set of pressures. The Nifty 50 closed at 24,252.00 on Friday, up a marginal 0.08% on the day but down 0.5% for the week; the Sensex ended at 77,540.83, flat on the session and 0.6% lower over five days, Business Standard data showed.
Both benchmarks had snapped multi-session losing streaks on Thursday, Nifty’s seven-session slide and Sensex’s four-session slide, before struggling for direction into the weekend, with IT, FMCG, auto and pharma stocks dragging even as metals and realty held up.
Brent crude near $94 a barrel, amid renewed US-Iran tensions that also rattled US markets, was the common thread pressuring bonds and Indian equities simultaneously.
FIIs sold a net ₹583.36 crore of Indian shares on August 20, even as DIIs bought ₹3,537.71 crore the same session, per NSE data.
Foreign investors remain net buyers for the month overall, having added ₹23,815 crore since August 1, NSDL data showed, a cushion that has helped Nifty hold above its 24,050 support zone through the volatility.
| India Market Snapshot | As of Aug 21, 2026 Close |
|---|---|
| Nifty 50 | 24,252.00 (+0.08% day / −0.5% week) |
| Sensex | 77,540.83 (+0.00% day / −0.6% week) |
| Brent Crude | ~$94/barrel |
| FII Activity (Aug 20) | Net sold ₹583.36 crore |
| DII Activity (Aug 20) | Net bought ₹3,537.71 crore |
| FII Activity (MTD, August) | Net bought ₹23,815 crore |
| Nifty Support / Resistance | 24,050 / 24,500–24,600 |
Source: NSE, NSDL, Business Standard
Nvidia’s August 26 Verdict Looms Large
The next major swing factor for both markets arrives Wednesday. Nvidia reports Q2 FY27 earnings on August 26 after the US market close.
The company has guided for roughly $91 billion in revenue, plus or minus 2%, while Wall Street analyst consensus sits slightly higher at approximately $91.7–91.9 billion.
The print will be parsed closely for Blackwell shipment volumes and data-center demand commentary — inputs with potential read-through implications for India’s IT majors and AI-capex-linked names, several of which slipped through this week’s global selloff.
A strong beat-and-raise could extend Friday’s relief rally into next week; a cautious guide could reignite the bond-yield pressure that dragged both Wall Street and Dalal Street lower this week.
For live foreign and domestic institutional flow data, track NiftyTrader’s FII-DII Tracker.
Bottom Line
US fund managers are still buying the earnings story even as bond yields and oil prices complicate the picture, and Indian markets are caught in the same crosscurrents, holding key support on DII buying while FIIs stay net positive for the month.
With Nvidia’s report now the closest major catalyst on the calendar, next week’s direction for Nifty and Sensex may hinge less on this week’s fund-flow data and more on what the company signals about AI demand on Wednesday.
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Frequently Asked Questions
How much did US equity funds attract in the week ended August 19, 2026?
Investors poured a net $11.72 billion into US equity funds, the largest weekly inflow since July 29, even as bond yields and oil prices rose, according to LSEG Lipper data.
When does Nvidia report Q2 FY27 earnings, and what’s the market expecting?
Nvidia reports on Wednesday, August 26, 2026, after the US market close. The company has guided for about $91 billion in revenue (±2%), while analyst consensus sits near $91.7–91.9 billion.
How did Nifty and Sensex perform this week?
The Nifty 50 closed at 24,252.00 on August 21, down 0.5% for the week, while the Sensex ended at 77,540.83, down 0.6% for the week, both indices snapped multi-session losing streaks on Thursday before struggling for direction into the weekend.
Are FIIs still buying Indian equities in August 2026?
Yes. Despite selling ₹583.36 crore on August 20, FIIs remain net buyers of ₹23,815 crore for the month so far, according to NSDL data.
What are the key support and resistance levels for Nifty right now?
Nifty has support near 24,050 and faces resistance in the 24,500–24,600 zone, a range that has held through this week’s volatility.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a SEBI-registered financial advisor before making any investment decisions. Investments in securities markets are subject to market risks.
